www.theglobeandmail.com
You do realize the Federal government does NOT control the Bank of Canada right?
If there is uncertainty the Bank will go slow in terms of lowering rates. I doubt they will do another cut in July, however, they are signalling a future direction of travel. For those worried about house prices it is unfortunate the the Bank only has the blunt instrument of rate hikes or cuts. Frankly, if you actually want to cool a housing market you need to use administrative mechanisms that restrict lending to private investment companies, wannabe landlords and, frankly, people that don’t have the resources to afford houses in the event of a downturn and high rates. OSFI and CMHC should be more heavily involved in this. They tinker around the edges but are afraid of 1) bursting real estate prices and 2) making it appear they are working to keep new home buyers out of the market.
It's a catch-22 because first-time buyers can't afford to purchase or even qualify for a mortgage with higher interest rates. At the same time, politicians own properties, and how angry would the electorate be if we saw our property values slashed because of administrative mechanisms? Sure, please the first-time buyers and destroy the property value and retirement nest egg of homeowners.
Are you so naive to think the party in power has no influence over what the Bank of Canada does? Come on now.
Are you naive to not realize inflation today is at 2.7 and it is time to bring the rate down?
I think you are vastly overstating things. If there was strong political interference you would see international interest rate divergence that is not evident. If you compare say the EU rate, the Federal Reserve rate and the Canadian bank rate over 10 years there is practically no divergence in interest rate movements. Whereas, say the Turkish Central Bank is the plaything of political authorities and has wildly divergent interest movements when compared to G-20 countries despite similar or worse inflationary pressures.
They printed 40% of all dollars in existence within 3yrs. If anything the rate still needs to increase to level things out.
All for a 99.5% survivable virus that was developed in a lab funded by USA taxpayers.
It is clear that you are not an economist, and fortunately, the Bank of Canada does not seek your advice. Additionally, I assume you do not own property or have a mortgage, correct?
I own multiple properties mortgage-free.
Yet, if I am going to believe you actually own property (which I don't) then you would love to see your property value gutted correct?I own multiple properties mortgage-free.
What’s clear to you is diff than what’s clear to me bro
